Mandatory wage hikes pinch nonprofits

Most community-based nonprofits are locked into federal, state and local contracts that will not honor the increased employee costs that the wage increase brings, meaning that nonprofits would have to use or raise charitable dollars to subsidize the increase, said Doug Sauer, chief executive of the New York Council of Nonprofits. Most don’t have these funds to allocate so they cut back on staffing and services.

"It should be noted that this wage increase is also alongside increases in workers comp and unemployment rates, and raises at the state level of what constitutes an exempt employee," Sauer said. "There is a triple if not quadruple whammy on mandated employer costs."